Many businesses currently make use of so-called “loyalty” programs that reward customers for frequent purchase of the business's products or services. Well known loyalty programs include frequent flyer mileage programs, frequent guest programs at hotels, programs to reward frequent purchases at food markets, etc.
Issuers of payment cards such as credit cards have implemented programs wherein the payment card is co-branded with a particular retailer or manufacturer. In using such co-branded payment cards, consumers may earn additional reward points for purchasing merchandise using the card.
Generally, consumers earn additional points for shopping at the store or purchasing the merchandise of the co-brand partner. For example, purchases made at the co-branded partner store may result in the accrual of two points for spending with the specific co-brand partner retailer, and one point for all purchases made elsewhere. Once certain point thresholds are met, the consumer receives a reward from the co-brand partner, such as a discount certificate, merchandise or a gift certificate.
An airline program, on the other hand, typically offers an airline frequent flyer mile for every dollar spent. The miles earned by cardholder are added to the consumer's frequent flyer account so that they can earn free air travel more quickly.
The above-referenced conventional co-branded credit-card loyalty programs attract frequent purchasers of products by a particular retailer, or those wishing to travel by air. However, they do not entice the users of other types of products and services.
Hence, it would be desirable to provide incentive programs which reward customers for the use of payment cards for other types of goods or services.